Algerian Arms Deal Brings Russia $7.5 billion, Gas Market Leverage
Russian report confirmed follow-on deals for 6 Mi-26T2 super-heavy transport and 42 Mi-28NE attack helicopters.
June 12/14: Mi-28s. Rosvertol’s 2013 annual report contains a number of interesting details regarding its orders. Algeria [foreign customer 012] ordered 6 Mi-26T2 ultra-heavy lift helicopters on June 26/13, and 42 Mi-28NE attack helicopters on Dec 26/13.
Mi-28NEs are dedicated attack helicopters, without the secondary transport capabilities of Algeria’s 36 Mi-24 Mk.IIIs. This order makes them the type’s 2nd export customer after Iraq (15), but they are the type’s largest customer. Unless prospects in Egypt [customer 818], Turkmenistan [customer 795], or Uzbekistan [customer 860] really step up, they’re likely to remain so. Sources: Rostvertol PLC, “Annual Report ‘Rosvertol’, ZA2013 Year | LiveJournal bmpd [in Russian, incl. photos].
A February 2006 report noted that a $4 billion arms sale was brewing between Algeria and Russia involving fighter aircraft, tanks, and air defense systems, with the possibility of additional equipment. Those options came through the following month, as a high-level Russian delegation in Algeria closed up to $7.5 billion worth of arms contracts. The Algerian package remains post-Soviet Russia’s largest single arms deal. As an instructive comparison, annual Russian weapons export orders from all customers were just $5-6 billion per year in 2004 and 2005.
Reuters South Africa quoted Rosoboronexport chief Sergei Chemezov as saying that “Practically all types of arms which we have are included, anti-missile systems, aviation, sea and land technology.” The actual contents of that deal were murky, though DID offers triangulation among several sources to help sort out the confusion. A number of these deals have evolved over time, and other public-source information has helped to sharpen the picture a bit. The subsequent crash of Algeria’s MiG-29 deal, and its ripple effects, are also discussed.
The Algerian Package: What’s the Big Deal?
Structuring the Deal: Anatomy of a Euro-Squeeze
Contracts and Key Events
2010 – 2014
2006 – 2009
Appendix A: Algeria’s Appetite for Advanced Arms
Appendix B: Russia’s Arms Industry Woes
Appendix C: Additional Readings & Sources
News & Views
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